Gordon Pape calling it quits

I read that a small earthquake had hit Montreal today around 1:30pm. At 1:30pm, I was at work, but I didn’t feel anything of the earthquake.

Some parts of my portfolio did very well today! Surprise for EnCana Corporation (ECA) who hit the 32.13$! A little while ago, I had invested in 200 stocks of EnCana Corporation (ECA) at 29.59$. Since my investment in ECA, I find the title had problem to go up again. It’s probably not anytime soon that ECA is going to hit the 65$ per stock like it use to be, but at least, the increase of today show that ECA worth the try. I could sell my EnCana Corporation (ECA) and pay off a major part of my margin facility and make a profit of more than 500$. Feel appealing, but it’s not anytime soon that I am going to sell my precious EnCana stocks. EnCana can do much more better than just a 32.13$ per stock! Just give EnCana the chance it’s deserved, and you’ll see, I may be right. Maybe.

In his latest column title More uncertainty!, Gordon Pape warns investors about a possible index loss of 5 to 10%. Well, that’s nothing compare to the 2008 stock crash. My philosophy being: if I had been able to get out intact (or almost lol..) of the 2008 stock crash, my portfolio – now even more diversify than before – is going to support a 5, 10, 15, 20 or even 30, or 35% loss. TD Waterhouse had made a huge mistake by publishing Gordon Pape article in their pages. It’s actually giving me the idea of changing of online broker! Never taught about trading at 4.99$ with CIBC instead of 9.99$ commission fee of TD Waterhouse? Hummm... Interesting but TD had done a lot for me.

Investors should know better than just cashing the cash and running away out like chickens of the stock market with their money in their pockets! In period of uncertainty, it’s time to hold and stick to what you believe in. And myself, I certainly do not believe in Gordon Pape!

The world we live in is full of uncertainties. There will always be conflicts. There wars going on in different places of the Earth. It’s just we don’t hear about all of them in the news every day or don’t pay attention to them. In his article, Gordon Pape focuses of course, on the Japan tsunami disaster and the problem going on in Libya. Arabic people had decided to join their forces and call a revolution. This step is necessary. It’s not because a country want to get a democracy of its own that its time to sell investments and call it quick. Mentality need to be completely reverse. More than ever, it’s time to support the economy. In his article, Gordon Pape is screaming to small investors: SELL, SELL, SELL! Uncertainty is part of life. If an individual cannot support it – like it seems to be the case of Gordon Pape – well, my opinion would be: don’t invest at all! Stay home stuck in bank GICs.

To sell or not is the investor choice. In many occasions, while facing some lost, I decided not to sell my valuable assets. In most cases, the decision had pay off. My most famous example would be my 2008 investment in 500 stocks of Sprott Inc. (SII). Just before the stock crash of 2008, I made my ever first stock investment at 10$ per stock, 5 000$ value. Following the crash, Sprott Inc. (SII) got a hard hit and went from 10$ to under 4$... Imagine... My first stock investment, and I was already ruined... Back than, I was 28, all the time of the world. I was hurt, but I knew the market was going to recover. I never doubt about my investment in Sprott Inc. (SII). 2 years later, Sprott Inc. (SII) had hit closed the 10$, had paid many times dividend and special dividend. I mean, I win and will win again on the long run. This is all what investing in stock is about for me: investing in trust. I have the same level of confident in most of the companies that I invest in. That's why it's not anytime soon I will be selling piece of my portfolio just for the heck of selling.

Japanese are so self-efficient, they almost already fix their nuclear problem. Nothing is totally fixed yet, but at the speed things are improving, I am very tempted to say that we are going to have a resolution very soon. In order words: don’t sell your stocks because of a possible major Japanese nuclear eruption. We have to believe in those people and stop being as selfish as Gordon Pape. The stock market is more than just a place where to make (and sometime loose) money. It’s about being connected to something bigger than what you can actually imagine. That’s why I am so into the London-TMX merger. The possibilities are endless. But many of the banks CEOs, sitting comfortably on their millions, are not willing to open the possibilities. Of course not.

In other words, when it comes to finance, be careful to whom you’ll be listening to. Don’t trust the fool who suggest selling when a storm is about to hit hard, don’t trust the CEO bank pigs, the ones who don’t want of the London-TMX merger. All together, they are all the same, losers willing to make themselves important. Selling stocks in period of uncertainty is for LOSERS. Will you be part of them? I won’t, but I will be ready for the storm and, if it has to happen, a margin call. I AM READY! :0)

Welcome again Davis + Henderson Corporation (DH)! 100 new stocks of DH in my portfolio

To be continued soon!

Welcome WesternOne Equity Income Fund (WEQ.UN), 380 stocks of WEQ.UN in my portfolio

More about WesternOne Equity Income Fund (WEQ.UN) coming up soon!

The effect of the Japan tsunami on my investment portfolio

Devastation continues in Japan and my prayers go to the victims. The TSX got through a very hard time today, especially this morning. Despite all, I took the decision to move forward with my investment project. I even inject 5 000$ that was available on my line of credit over my margin, in order to avoid any sell stocks coming from TD Waterhouse.

Here's the thing: I use margin in my broker account. If my portfolio looses too much value, my margin could turn into the negative. Following what, TD Waterhouse could sell some of my most valuable assets without any warning. But even there, it was my choice to use margin and no matter how bad is the situation at this time, I do not regret my choice. I think my portfolio will go through the Japan tsunami and its consequences without too much trouble, but I could be wrong. And that’s why I had transferred a 5 000$ cash in my broker account today.

Just a couple of minutes ago, Stephen Harper announced that Japan nuclear crisis poses no radiation risks for Canadians. No risk for Canadians, but there could be a risk for the economy worldwide and I guess no one can really tell what’s going to happen next. How the Canadian stock market will react to Japan radiation? We had an example of the reaction just today: an awful and legitimate reaction. But still, I believe it’s not time to sell, it’s time to invest wisely. Good portfolio will be able to make it, and other not. I had gone through the 2008 stock market without any trouble because of 2010 awesome result. What I learn was essential: It takes bad years to have good ones. The years will pass, no years will be like 2008 and no years will be like 2011. But what matter is the long term. As long there’s human life there’s hope for a better financial future. And at this time, that’s really what I am hoping for. For life to continue, and the market to be good for me in the years to come. That’s part of the reason why I decide to trade today. Because my life goes on.

I am just hoping that things will get stabilize quickly in Japan, not much for the market, but for the human lives involve in the tragedy. How much money you can make from the stock market does not matter when human kinds suffer.

And the only reason behind is that my investment project is for the long run. I like to invest, I had been doing so since 2005 and I started investing in stocks back in 2008. Six years of investment had changed my life for the best. I couldn’t imagine myself selling all out or going a few months without investing. I would be bored.

Today had been a great day for my dividend income. Here’s what I received today in dividend:

Corby Distilleries Limited (CDL.A): 28.28$
Data Group Income Fund (DGI.UN): 32.52$
Pembina Pipeline Corporation (PPL): 56.55$
New Flyer Industries Inc. (NFI.UN): 19.49$

Total: 136.84$

That’s more in what I earn in a day of work for sure at this time. With what I currently earn in dividend so far and what I will probably earn in dividend for the next couple of months, well, I am now at the equivalent of 600$ in dividend income per month. That’s good, but I would like to double the amount by investing more of my own cash in the following months/years.

Now that the stock market is close, I transferred 5 000$ from my margin to my credit line. Will I have to pay interest on the 5 000$ transfer that I did today? I don’t know, but that would be a good question to ask TD and I think I am going to call them right now...

Tomorrow, I will transfer 5 000$ from the credit line to my margin and I guess I will be doing this scheme every working day for the next couple of weeks. Why? Well, it’s to avoid any critical situation. My stocks are my most precious possession. I won’t allow anyone to sell them. 5 000$ is not that much, but it’s all that I have available as fund to save me from an eventual disaster. That’s the price that needs to be paid while investing on margin.

Transfer money on your margin broker account....

It could be a good idea. TD Waterhouse can sell if the balance left in the margin reach the negative (because of stock loosing value...). I had 5 000$ I just transfer on my margin to keep it safe. My portfolio value (non registered Canadian one) is at 101k... I hope I will be ok.


Beautiful sunny day in Montreal - far from being close to devastation of Japan. I cannot realize whats going on right  now. Can only pray.

100 David + Henderson (DH) at 20.98$

I may qualify for the special dividend at closing date of March 18. DH price had remain quite stable despite the TSX loosing more than 300+ points just this morning. That was the reason behind my choice. TD stock could also make a great pick. But as for myself, I am done for now. Peace.

380 stocks of WEQ.UN

Sad day for Japanese people today... Prayers for the victims.

The TSX is loosing points, but its a natural consequence of what's going on.

I know its awful to say, but there might be some good opportunities right now. Take a look at TD, PHS.U etc... As for myself, I purchase 380 units of WEQ.UN at 5.40$. But you can have it at cheaper if you plan to stay in front of your laptop all day today...

Despite I am trading today, I feel sad for the Japanese. I am just trying to help myself by adding something new to my portfolio.

TD Canada Trust is doing it again: credit card balance special interest rate with TD Visa

TD was the first Canadian bank to increase its dividend in 2011. I wrote in numerous times my experiences with TD Canada Trust banking services (most of them being very very good) and not to name them again, TD Waterhouse. And now, guess what, well, TD Canada Trust is helping me again! This morning, I wrote about my debt problem. I said I wanted to pay off a credit line at 10 000$ that I currently hold at a bit more than 7%. That one is not being hold at TD.

Anyhow, I wrote previously I wanted to pay off 2 000$ on it and so on. But the real reason why I was thinking about paying debt is that I currently hold a close 8k credit card balance at TD that is currently at a special interest rate at less than 5%, which is very good for a credit card. That special interest rate is about to expired this upcoming month of April. Which mean that sometime in April 2011, the regular rate of 19% will apply on that 8k debt... So in preparation of that, I taught about placing some money on my 10k credit line and later on transfer the money on my credit card...

But guess what, thanks to TD Canada Trust, I will be able to get an extension of my special interest rate. This means that I can continue to do whatever I want with my money. I won’t have to deal with a 19% interest rate and, best of all, if I want, I can keep that 2 000$ that I was talking about previously this morning for investment purposes if I really want to... I had been a long time customer of TD Canada Trust as well as other banks. And I can confirm, you simply cannot get a renewable of a credit card balance transfer special interest rate like that ANYWHERE ELSE, no matter how good is your credit score.

Just recently, the only thing that was able to do BMO Mastercard for me is to add an extra 1 000$ to my credit card, no credit check needed. And so what? What do you want me to do with an extra 1 000$ at 19%? BMO Bank of Montreal is such a pain. It’s just reflecting the lack of judgement of their management team.

But with TD Canada Trust, everything is different! I get what I want ALL THE TIME with TD! And with TD EVERYTHING MAKE SENSE. And it’s not like I have a mortgage with TD Canada Trust. I am not that valuable either way for TD in the sense that I don’t hold not even close to 200k in investment with them. See what I mean? So can you answer me why TD Canada Trust is giving me everything I want, and that being all the time? It’s because TD is a bank who care. In 2011, they had been the first Canadian bank to increase their dividend. TD Canada Trust is the only bank being open as early as 8 am in the morning. Many of TD branches are open on Saturday and, well, just like this wouldn’t be enough, many of TD branches are now open on Sunday. And on top of that, TD Waterhouse rep surf the Web looking for customers who had lived a bad customer experience with them and, instead of ignoring them like love to do BMO Investorline, well, you know what, TD Waterhouse has some rep who will initiate a contact no matter how little you are (that happen to me!!!). As a customer, can I really ask for more? I don’t think so.

And now, best of all, I can keep that 2 000$ of mine right inside my pockets and help boost my dividend income and asset value with whatever I want to invest in... (which I didn’t decide yet what to do exactly at this time because of the excitement but I will let you know for sure!!!).

That’s the power of TD Canada Trust as a bank: making things possible for the middle class people with big dreams.

Time has come to pay off some debt?

Today, something strange happen and it makes me realize something. Well, it wasn’t exactly strange, but anyway, I use to purchase one or 2 lotteries ticket every week and a couple of scratch and win tickets if you see what I am talking about, but not that much. I just like to play lottery, but I do not over-play. I didn’t win the jackpot yet lol... but I win a free Lotto Max ticket. Yeah! But as for my scratch and win tickets, I didn’t win anything. And there I was, thinking oh, I didn’t win... And there, I taught about the 2 000$ I had deposit this last Friday in my broker account.

Yeah, 2 000$! Don’t ask me how I make it possible to save such money, but the 2 000$ was really from my checking account (and now there’s less than 100$ left!) and since my rent and other was paid for this month and that I am going to earn a paycheque from my weekend job this week and the week after another one from my daytime job well, I taught, let’s go for it, let’s go purchase 100 units of REIT INDEXPLUS Income Fund!

But after scratching my tickets and after I didn’t win, I taught about this newest investment I wanted to made and I taught: am I pushing my luck too far? I had in mind the comments of the Dividend Lover about my debt situation, that after a certain point, it didn’t worth it to go too deep into debt for investment because it’s just not good exceeding a point etc. etc. etc... And at this point, I am close to 70k in debt... But... I really like my portfolio at this all. For 2011, including the dividend received so far, its 6 778.83$ in dividend income, not to include the RRSP dividend ones... Including the RRSP dividend, its reached 7 112.59$. Currently, the value of my portfolio is down of maybe 4k, but it’s in result of the fluctuation of the market. So why should I pay debt instead of investing?

I have real problem to focus on paying debt but yesterday, something happen that make me realize that this might be a good time. So Monday, I will take a 2 000$ + an extra 1 000$ from my margin and deposit that money on my 10 000$ credit line.

After reaching and even the exceeding the 151k in assets, I was happy because I could see I was finally going somewhere. My net worth after debt was of 82k, I was earning great dividend, etc. This is all fantastic but I reach the point where I need to pay off some debt, even just a couple thousand dollars.

Which mean I won’t invest new money in my portfolio over the next months, but I will continue to look into new opportunities. I am still looking forward to make some money out of HZU and, why not, maybe even X, among other. And well, among the way, I could changed my mind and take on some money to invest if SP Brunner is coming on with something as great as K-Bro Linen Inc. (KBL).

This seems a bit unreal at this time still. Paying debt... I would really like to get into the REIT INDEXPLUS Income Fund for 100 units. It would had bring in 78$ extra in dividend. I don’t think I am really pushing my luck too far anyway.

And stay tune, because as requested, I will be posting the gain and new investments made in 2010 soon!

Initial public offering of Middlefield Group new REIT INDEXPLUS Income Fund

Despite the TSX small plunge that still persist today, my non registered portfolio is at more than 104k. I am confident I will be able to make a good return out of the HZU. In my previous post about Horizons BetaPro COMEX Silver Bull Plus ETF (HZU), a reader comment to be careful with Horizons BetaPro COMEX Silver Bull Plus ETF (HZU), that the lowest value had reached 8$ in the past 52 weeks. HZU value is now at more than 32$ per unit. While taking a quick look at the performance of HZU, any small investors could think that the 8$ per unit value is a sign of volatility of the title. But it’s truly not the case.

In the past 52 weeks, HZU constantly gains value, just like my favorite Sprott Physical Silver Trust (PHS.U). Which mean here that we are not talking here about a title that goes up-and-down without any reason. What we are seeing here is a fantastic case of steady grows. These days had been great for silver investment. Remember, I had been actively following the PHS.U since November 2010. That doesn’t make a silver specialist BUT, I can attest of what I had been able to achieve with my PHS.U. If it wouldn’t be for the extra-value of the Canadian dollars at this time, I would have been able to continue my success story with PHS.U. I am currently trying to achieve with HZU what I had been able to achieve with PHS.U. Meaning a lot of cash... And I have a feeling it’s going to work out! 

I got through something very interesting today: the initial public offering REIT INDEXPLUS Income Fund. I am going to explain why I will be investing in 100 units of REIT INDEXPLUS Income Fund.

These days, it’s seemed like Rob Carrick is going gaga for my iShares S&P/TSX Capped REIT Index (XRE)! I am saying “my”, because I had been holding iShares S&P/TSX Capped REIT Index (XRE) for a little while now. According to Carrick, it’s better to hold XRE inside an RRSP or TFSA account because the dividend earns through XRE are a mix of a bit everything involve in real estate. In other words, XRE is not very tax efficient. In my case, I decided to hold iShares S&P/TSX Capped REIT Index (XRE) outside a registered account to add something new to my margin. It wasn’t a bad decision to make if you want my point of view, because I didn’t have any interest in REIT before. XRE add a great diversification to my portfolio. I enjoy the monthly dividend.

Ok, but what iShares S&P/TSX Capped REIT Index (XRE) have to do with REIT INDEXPLUS Income Fund? Well, it’s all a matter of experience. And in this case, my personal experience with REIT. Despite international conflicts going on, the economy is doing better; many jobs had been created in the US. The fact that new jobs had been created in the US is one of the most positive and strong argument about the economy. And with Barack Obama, nothing can go wrong. That being said, the economy is getting stronger. On the long run, real estate is a good investment. I am not a house or condo owner, but I am a REIT units holder!

I had a very good experience with XRE. So far, I made a profit of a bit more than 100$ with my investment in iShares S&P/TSX Capped REIT Index (XRE), not to include the dividend earn. Not much, but the title is stable. And this is exactly what I am looking for when I invest: stability and dividend income. And I am getting both of best worlds with XRE.

Now, imagine an investment product that can possibly beat the TSX Capped REIT Index and promised a 6.5% dividend yield (XRE provided a 5.178% dividend yield). Wouldn’t that be great? Well, that’s exactly what REIT INDEXPLUS Income Fund is all about. 

For the initial public offering, REIT INDEXPLUS Income Fund units are only at 12$. The minimum investment required is of 1 200$ (minimum 100 units) only (and no commission fee!). Sound to me like a great investment and worth a try. I would to get a 100 units for my portfolio. REIT INDEXPLUS Income Fund is being offered by Middlefield Group, an Alberta based asset management company.